Rochester Public Transit Faces Financial Trouble Ahead of Change
Rochester, MN (KROC-AM News) - The Rochester City Council is scheduled to receive an update today on the city's financially strained public transit system ahead of the transition to a new operator this fall.
Rochester transit reserve fund faces depletion
City documents indicate that the city's transit reserve fund, if no action is taken, would be depleted by October 2030. The fund currently holds nearly $5.3 million.
Transit deficit expected to grow sharply
The presentation to the City Council projects that the drawdown of the reserve fund beginning this year is expected to total about $800,000. That deficit is predicted to grow to more than $1.9 million next year and nearly $2.8 million in 2028. The documentation states that the projections include transit operations and capital improvement expenses, but exclude costs associated with the new Link Bus Rapid Transit System.
Ridership remains far below pre-pandemic levels
The dire financial outlook is due to a dramatic drop in ridership that began with the COVID-19 pandemic. Prior to 2020, Rochester Public Transit attracted more than 2 million riders annually. City officials say the system now provides approximately 650,000 passenger trips per year.
At the end of July, annual ridership was below 400,000, which is nearly 800,000 below the annual goal of almost 1.2 million.
City awards $78 million contract to Via Transit
Last month, the City Council voted to award a $78 million contract to Via Transit to operate Rochester Public Transit for the next five years. The new contract takes effect in September to allow for a smooth transition away from First Transit, which has been under contract to operate Rochester's system since 2012.
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